The Andrews Labor Government has reached binding final agreements with the East West Connect consortium (EWC), formalising the in principle deal that was agreed in April.

Under the deal, the State acquires the EWC business and associated project assets for $1. It confirms the final cost to the State includes $339 million in costs incurred by EWC through the bid process and design pre-construction and $81 million that was spent to establish the credit facility for the project.

The State has also negotiated a $3.1 billion bond agreement, available for the Melbourne Metro Rail Project, with members of the EWC banking group.

The bond agreement, along with the swap arrangement, will be managed by Treasury Corporation Victoria.

The Metro bond agreement provides the State with financing capability for Melbourne Metro, at a far lower cost to the Victorian taxpayer than the project banking facility provided to EWC.

Combined with the $1.5 billion announced in the 2015-16 Victorian Budget, the Government has now secured more than $4.5 billion for the transformative rail project, almost half the total expected cost.

The State has appointed Commonwealth Bank of Australia, National Australia Bank and Westpac Banking Corporation to act as joint lead managers for the issuance program.

The Government thanks all parties for their cooperation.

Quotes attributable to Treasurer, Tim Pallas

“Before the election, we promised that a Labor Government would not proceed with the Liberals’ East West Link and would not be liable for compensation. These promises have been kept.”

“While not a cause for celebration, it allows Victorians to move forward and focus on projects that stack up.”

“The Andrews Labor Government will now get on with building projects that our State needs and that Victorians voted for.”